EXLSERVICE HOLDINGS INC (EXLS) Stock Fundamental Analysis
NASDAQ:EXLS - Nasdaq - US3020811044 - Common Stock - Currency: USD
Taking everything into account, EXLS scores 6 out of 10 in our fundamental rating. EXLS was compared to 82 industry peers in the IT Services industry. EXLS gets an excellent profitability rating and is at the same time showing great financial health properties. EXLS has a decent growth rate and is not valued too expensively. These ratings would make EXLS suitable for quality investing!
1. Profitability
1.1 Basic Checks
EXLS had positive earnings in the past year.
EXLS had a positive operating cash flow in the past year.
Each year in the past 5 years EXLS has been profitable.
EXLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.89%, EXLS belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.36%, EXLS belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.02%, EXLS belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
EXLS had an Average Return On Invested Capital over the past 3 years of 15.15%. This is significantly below the industry average of 21.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 21.36% | ||
| ROIC | 15.02% |
ROA(3y)11.89%
ROA(5y)10.36%
ROE(3y)20.31%
ROE(5y)17.99%
ROIC(3y)15.15%
ROIC(5y)13.79%
1.3 Margins
Looking at the Profit Margin, with a value of 11.36%, EXLS belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
EXLS's Profit Margin has improved in the last couple of years.
The Operating Margin of EXLS (14.74%) is better than 79.27% of its industry peers.
In the last couple of years the Operating Margin of EXLS has grown nicely.
With a Gross Margin value of 37.90%, EXLS perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
EXLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.74% | ||
| PM (TTM) | 11.36% | ||
| GM | 37.9% |
OM growth 3Y0.91%
OM growth 5Y10.78%
PM growth 3Y1.78%
PM growth 5Y9.57%
GM growth 3Y-0.74%
GM growth 5Y2.1%
2. Health
2.1 Basic Checks
EXLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
EXLS has less shares outstanding than it did 1 year ago.
EXLS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EXLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.45 indicates that EXLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of EXLS (9.45) is better than 90.24% of its industry peers.
The Debt to FCF ratio of EXLS is 1.25, which is an excellent value as it means it would take EXLS, only 1.25 years of fcf income to pay off all of its debts.
EXLS has a better Debt to FCF ratio (1.25) than 76.83% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that EXLS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, EXLS perfoms like the industry average, outperforming 54.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.45 |
ROIC/WACC1.61
WACC9.35%
2.3 Liquidity
A Current Ratio of 3.41 indicates that EXLS has no problem at all paying its short term obligations.
EXLS has a Current ratio of 3.41. This is amongst the best in the industry. EXLS outperforms 86.59% of its industry peers.
EXLS has a Quick Ratio of 3.41. This indicates that EXLS is financially healthy and has no problem in meeting its short term obligations.
EXLS's Quick ratio of 3.41 is amongst the best of the industry. EXLS outperforms 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.22% over the past year.
The earnings per share for EXLS have been decreasing by -11.63% on average. This is quite bad
EXLS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.18%.
The Revenue has been growing by 13.15% on average over the past years. This is quite good.
EPS 1Y (TTM)20.22%
EPS 3Y-29.95%
EPS 5Y-11.63%
EPS Q2Q%26.32%
Revenue 1Y (TTM)14.18%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%14.78%
3.2 Future
EXLS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.19% yearly.
The Revenue is expected to grow by 12.01% on average over the next years. This is quite good.
EPS Next Y15.25%
EPS Next 2Y14.7%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue Next Year12.3%
Revenue Next 2Y11.84%
Revenue Next 3Y12.01%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
EXLS is valuated rather expensively with a Price/Earnings ratio of 24.45.
EXLS's Price/Earnings ratio is a bit cheaper when compared to the industry. EXLS is cheaper than 60.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of EXLS to the average of the S&P500 Index (27.52), we can say EXLS is valued inline with the index average.
A Price/Forward Earnings ratio of 19.70 indicates a rather expensive valuation of EXLS.
EXLS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EXLS is cheaper than 63.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. EXLS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
EXLS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EXLS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.49 | ||
| EV/EBITDA | 19.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EXLS has an outstanding profitability rating, which may justify a higher PE ratio.
EXLS's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)N/A
EPS Next 2Y14.7%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
No dividends for EXLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.03
+0.74 (+1.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change29.78%
Market Cap7.00B
Analysts83.75
Price Target55.66 (29.35%)
Short Float %4.62%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.34%
Min EPS beat(2)4.04%
Max EPS beat(2)6.65%
EPS beat(4)4
Avg EPS beat(4)4.31%
Min EPS beat(4)1.41%
Max EPS beat(4)6.65%
EPS beat(8)8
Avg EPS beat(8)4.34%
EPS beat(12)12
Avg EPS beat(12)5.17%
EPS beat(16)16
Avg EPS beat(16)6.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)0.73%
Revenue beat(16)10
Avg Revenue beat(16)1.24%
PT rev (1m)0.06%
PT rev (3m)-1.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 19.7 | ||
| P/S | 3.68 | ||
| P/FCF | 28.49 | ||
| P/OCF | 23.84 | ||
| P/B | 6.92 | ||
| P/tB | 12.84 | ||
| EV/EBITDA | 19.78 |
EPS(TTM)1.76
EY4.09%
EPS(NY)2.18
Fwd EY5.08%
FCF(TTM)1.51
FCFY3.51%
OCF(TTM)1.8
OCFY4.19%
SpS11.7
BVpS6.22
TBVpS3.35
PEG (NY)1.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 21.36% | ||
| ROCE | 19.58% | ||
| ROIC | 15.02% | ||
| ROICexc | 19.54% | ||
| ROICexgc | 33.9% | ||
| OM | 14.74% | ||
| PM (TTM) | 11.36% | ||
| GM | 37.9% | ||
| FCFM | 12.91% |
ROA(3y)11.89%
ROA(5y)10.36%
ROE(3y)20.31%
ROE(5y)17.99%
ROIC(3y)15.15%
ROIC(5y)13.79%
ROICexc(3y)20.61%
ROICexc(5y)20.14%
ROICexgc(3y)45.95%
ROICexgc(5y)N/A
ROCE(3y)19.75%
ROCE(5y)17.97%
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.53%
ROICexc growth 3Y-6.9%
ROICexc growth 5Y14.65%
OM growth 3Y0.91%
OM growth 5Y10.78%
PM growth 3Y1.78%
PM growth 5Y9.57%
GM growth 3Y-0.74%
GM growth 5Y2.1%
F-Score8
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 84.95% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 13.74 | ||
| Cash Conversion | 87.15% | ||
| Profit Quality | 113.7% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 | ||
| Altman-Z | 9.45 |
F-Score8
WACC9.35%
ROIC/WACC1.61
Cap/Depr(3y)89.55%
Cap/Depr(5y)85.41%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.33%
Profit Quality(3y)94.25%
Profit Quality(5y)118.13%
High Growth Momentum
Growth
EPS 1Y (TTM)20.22%
EPS 3Y-29.95%
EPS 5Y-11.63%
EPS Q2Q%26.32%
EPS Next Y15.25%
EPS Next 2Y14.7%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue 1Y (TTM)14.18%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%14.78%
Revenue Next Year12.3%
Revenue Next 2Y11.84%
Revenue Next 3Y12.01%
Revenue Next 5YN/A
EBIT growth 1Y16.5%
EBIT growth 3Y18.96%
EBIT growth 5Y25.35%
EBIT Next Year31.69%
EBIT Next 3Y17.96%
EBIT Next 5YN/A
FCF growth 1Y46.43%
FCF growth 3Y14.72%
FCF growth 5Y11.62%
OCF growth 1Y40.5%
OCF growth 3Y13.35%
OCF growth 5Y9.78%